(BQ) Part 2 book “Essentials of contemporary management” has contents: Designing organizational structure, leading individuals and groups, effective team management; communication and information technology management, and other contents. | 7 Designing Organizational Structure LEARNING OBJECTIVES After studying this chapter, you should be able to: 1 Identify the factors that influence managers’ choice of an organizational structure. [LO 7-1] 2 Explain how managers group tasks into jobs that are motivating and satisfying for employees. [LO 7-2] 3 Describe the types of organizational structures managers can design, and explain why they choose one structure over another. [LO 7-3] 4 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of authority and integrating mechanisms. [LO 7-4] Sherilyn McCoy, Avon’s new CEO, inherited more than just her title from her predecessor Andrea Jung. Continuing Jung’s cuts of managerial positions and needless products while fending off takeover attempts gives McCoy’s position a fresh challenge each day. MANAGEMENT SNAPSHOT Avon’s Global Structure Results in a Disaster How Should Managers Organize to Improve Performance? A fter a decade of profitable growth, Avon suddenly began to experience falling global sales in the mid-2000s both in developing markets in Central Europe, Russia, and China, a major source of its rising sales, and in the United States and Mexico. Avon’s stock price plunged in 2007 and its CEO Andrea Jung was shocked by this turn of After several months jetting around the globe to visit the managers of its different global divisions, Jung came to a surprising conclusion: Avon’s rapid global expansion had given these managers too much autonomy. They had gained so much authority to control operations in their respective geographic regions or countries that they now made decisions to benefit their own divisions—and these decisions had hurt the performance of the whole company. Avon’s country-level managers from Poland to Mexico ran their own factories, made their own product development decisions, and developed their own advertising campaigns. And these decisions were often based on poor marketing .
